A landmark minerals deal has been reached between Ukraine and the U.S., marking a significant step forward toward peace in Eastern Europe.
The natural resources agreement will benefit both nations, with the U.S. creating a reconstruction investment fund to help Ukraine rebuild its heavily bombed infrastructure, working closely with its Western ally.
This deal has been in the works for some time, following previous warnings from the U.S. President to Ukrainian President Zelenskyy, cautioning that he would face “big, big problems” if he backed out, which led to a tense exchange between the two leaders.
Since its invasion of Ukraine on February 24, 2022, Russia has repeatedly bombarded the skies above its southern neighbor with airstrikes, and now occupies nearly 20 percent of Ukrainian territory.
How much money has the U.S. provided to Ukraine?
According to the U.S. Department of State, the U.S. has offered the equivalent of $182.8 billion in support to Ukraine. Meanwhile, the Kiel Institute, a German-based non-profit tracking international aid to Ukraine, estimates the total at $119.7 billion.
However, President Donald Trump has claimed the figure to be as large as $350 billion, although he’s provided no evidence to support this.
What has the Trump administration said about the Ukraine minerals deal?
The U.S. Treasury Department issued a statement, which read in part: “On April 30, the United States and Ukraine signed an agreement to establish the United States-Ukraine Reconstruction Investment Fund.”
“In recognition of the significant financial and material support that the people of the United States have provided to the defense of Ukraine since Russia’s full-scale invasion, this economic partnership positions our two countries to work collaboratively and invest together to ensure that our mutual assets, talents, and capabilities can accelerate Ukraine’s economic recovery.”
The statement went on to explain that both the US and Ukraine governments will work together ‘under the leadership of President Donald J. Trump’.
The minerals deal that the US and Ukraine have been brokering for well over a month, has finally been struck (Chip Somodevilla/Getty Images)
What does the US-Ukraine minerals deal mean?
What the deal means is that the US will split any profits and royalties that Ukraine receives from any future sale of its 2.5-billion-year-old rare earth minerals.
The deal offers the Trump administration an economic incentive to support Ukraine by investing in its defense and reconstruction.
“This agreement sends a clear message to Russia that the Trump Administration is committed to a peace process focused on a free, sovereign, and prosperous Ukraine in the long term,” said U.S. Secretary of the Treasury Scott Bessent.
“President Trump envisioned this partnership between the American and Ukrainian people to demonstrate both nations’ dedication to lasting peace and prosperity in Ukraine.
“And to be clear, no state or individual who funded or supported the Russian war machine will be allowed to benefit from Ukraine’s reconstruction.”
The deal comes after Trump and Zelenskyy met last week during Pope Francis’ funeral (Office of the President of Ukraine via Getty Images)
The deal is expected to be substantial enough for the U.S. to recover all the aid it has provided to Ukraine since the war began.
Ukrainian Prime Minister Denys Shmyhal has emphasized that the agreement is fair for his country, with Ukraine retaining full control over its natural resources. He added that the deal ensures the U.S. would only profit from new investments, with no debt obligations placed on Ukraine.
The primary focus will now shift entirely to negotiating a peace deal between Russia and Ukraine.
